The ICED Theory: Strategies to Grow Infrequent Products

The ICED Theory: Strategies to Grow Infrequent Products

Introduction:
Managing infrequent consumer products can be a challenging task, as the window of interaction with users is limited. In this article, we will explore the ICED Theory (Infrequency, Control, Engagement, Distinctiveness), a framework designed to help grow infrequent products. By understanding and implementing strategies based on the ICED Theory, businesses can overcome the unique challenges associated with infrequent product usage and drive growth.

Understanding the Use Case Frequency Spectrum:
All products have a natural frequency of usage, which Reforge refers to as the Use Case Frequency Spectrum. Products with higher usage frequencies, occurring more than once per month, are considered within the "Habit Zone," making it easier to build recurring habits with users. On the other hand, infrequent products, with usage frequencies less than quarterly, fall into the "Forgettable Zone," as users may easily forget about them. The challenge lies in applying the same tactics and strategies of frequent products to infrequent ones.

The ICED Theory: A Framework for Growth:
The ICED Theory comprises four dimensions: Infrequency, Control, Engagement, and Distinctiveness. By strategically addressing each of these dimensions, businesses can move from the left side of the spectrum to the right, effectively growing their infrequent products.

1. Infrequency:
   Infrequent products pose unique challenges, as customers' ability to recall them decreases over time. To combat this, offering a complete experience can be challenging when the product is infrequent, and relevant experiences occur outside the product itself. TurboTax stands as an example, allowing users to file taxes entirely within the product, simplifying a complex process and resulting in high customer satisfaction. Understanding the limitations of infrequency and finding innovative ways to provide value can help enhance product recall.

2. Control:
   The degree of control over the user experience plays a crucial role in the success of infrequent products. For example, Indeed.com has partial control over the job interview experience, limiting its ability to delight customers. On the other hand, products like TurboTax, with full control over the tax filing experience, enjoy high retention rates. Finding ways to increase control over the user experience can lead to improved customer satisfaction and loyalty.

3. Engagement:
   Engagement before, during, and after a transaction is essential for infrequent products. The degree of complexity in a transaction influences customer engagement, with lower perceived effort leading to higher customer loyalty. Additionally, the level of touch required, whether single or constant touch, impacts the product's value reinforcement. Predicting customer retention for infrequent products varies across the spectrum, with some products being more predictable than others. Understanding these aspects of engagement can help businesses design strategies to retain customers and increase their lifetime value.

Distinctiveness and Market Fit:
Distinctiveness plays a vital role in customer acquisition for infrequent products. Brands that offer unique value propositions, like Airbnb, enjoy strong brand recall and direct traffic. Non-distinctive offerings, such as Expedia, heavily rely on search engines and paid traffic. Being distinctive is crucial, as the combination of infrequency and lack of distinctiveness can strain customer acquisition efforts.

Conclusion:
Managing infrequent products requires a unique approach and understanding of the ICED Theory. By addressing the dimensions of Infrequency, Control, Engagement, and Distinctiveness, businesses can overcome the challenges associated with infrequent product usage and drive growth. Here are three actionable pieces of advice based on the ICED Theory:

1. Understand the limitations of infrequency and find innovative ways to provide a complete experience within the product itself.
2. Increase control over the user experience to enhance customer satisfaction and loyalty.
3. Design engagement strategies that consider the complexity of transactions, the level of touch required, and the predictability of customer retention.

By implementing these strategies, businesses can maximize the potential of their infrequent products and achieve long-term growth and success.